Price

        Select an organization that has changed its prices for its product or service. Research the topic and discuss the following questions: • What caused the organization to change its prices? Was dynamic pricing used? • What were the results of the price change? • How might the concept of value versus price play into the organization's decision to adjust its pricing?
The results of this change have been mixed; while some customers appreciate the flexible pricing, others are confused by the lack of consistency when viewing products across different platforms or locations. Customers feel they can no longer trust Amazon’s advertised prices which could negatively affect their loyalty towards the company. Additionally, dynamic pricing is often seen as exploitative by those who can’t afford it – making them less likely to shop on Amazon due to higher costs. In terms of value versus price, I believe this played an important role in Amazon’s decision-making process when shifting to dynamic pricing. By offering variable rates for certain items or services, companies like Amazon can capture more revenue from customers willing to pay premium prices while still appealing to those who cannot afford it by providing lower rates as well. In essence this allows them to maximize profits while still focusing on customer satisfaction which is something many organizations strive for. Overall I think it is important for companies like Amazon consider both sides of the equation when changing their prices – whether that means accommodating all potential customers through variable rates or reassuring current shoppers through consistent advertising - in order ensure continued brand loyalty and positive customer experiences moving forward.

Sample Solution

One organization that has recently adjusted its prices is Amazon. The company changed its pricing model from a flat fee to dynamic pricing in order to better compete with other online retailers and meet customer demand. This shift involved setting different prices for the same item, depending on factors such as customer location and time of purchase.